The pandemic, Brexit and ongoing world events have relentlessly wreaked havoc within the manufacturing industry, making forecasting, contingency planning and strategies based on robust data crucial in the fight for survival. Cloud ERP systems first and foremost dispense with siloed information and the resulting single, real-time version of the truth facilitates smart data-led decisions.
Here, we consider some of the benefits manufacturers achieve when spreadsheets and manual processes are discarded and a strategy for a phased digital transformation is adopted.
The news is full of stories of delays affecting the supply chain. Queues of lorries stacked at Folkestone and Dover are the perfect visual depiction of the impact of Brexit-related red tape. With fuel prices and the war in Ukraine also contributing to supply chain issues, manufacturers are facing additional challenges that they hoped they left behind as pandemic-related restrictions eased. Management of product movement and transportation that was previously simple is now harder to track – estimating the timings of deliveries, managing stock allocations and forecasting future requirements is no longer the quantitative calculation it used to be.
It may sometimes feel that these challenges are insurmountable and there’s nothing that can be done but ‘go with the flow’, but that way danger lies – if you are unable to meet expectations when it comes to fulfilling customer requests, as we are all aware, customers can be transient.
There are steps youcan take to ensure your processes are as transparent and efficient as they can be, in the face of external forces you can’t control. The easiest way a manufacturing business can increase understanding across all aspects of their organisations is by introducing a cloud ERP system which tracks stock movements, financial information and customer behaviour. If you can keep track of product availability and whereabouts and are up to date on inventory forecasts and reordering processes, you’re already one step ahead.
Here are some tangible ways that having one ‘source of truth’ can help your business:
Accuracy: Having siloed information streams – and by that we mean different systems across departments which could be excel spreadsheets, bespoke or off the shelf inventory platforms, or even paper trails – just means more room for error. With one point of truth, you can be more confident of precision when it comes to stock availability and location, past and future orders and countless other business information. While mistakes can be rectified, in an increasingly competitive market, customers are slow to forgive, and quick to go elsewhere. It also reduces reliance on specific employees to update systems (there are still many businesses putting paperwork into someone’s in-tray to input) and if that person is out of the office, it just piles up, meaning data is constantly out of date.
Real time oversight of stock: If your biggest customer places a significant order, you want to be able to say ‘yes’ immediately and confirm fulfilment. But if you’re stock is held in different locations, and transported around the world, it may take some time to establish this quickly. With an ERP system, all aspects of the distribution process are visible. By initiating a multi-location supply planning tool, all stock is accounted for, and you can confirm availability at the touch of a button… with confidence.
Forecasting: The sophistication of a cloud ERP platform doesn’t just allow you to review past and current orders, but it also predicts future behaviour in terms of product demand. The one thing no organisation needs now is more uncertainty. This applies to the risks associated with under supply, as well as oversupply – having too much stock can cause issues too. The system allows for planning and modelling decisions to be made, with informed and precise information easily digested via a dashboard. Of course, this is available at the tip of your fingers on a computer or other device, from anywhere that has an internet connection.
Balance the books: Financial information is also at the heart of an ERP platform. Functionality includes several complex processes such as recurring billing and invoicing from one centralised location, meaning no other third-party software is required. Rather than being a stand-alone function, it centralises all accounting and financial aspects – from staff salaries to customer payments, meaning increased efficiency along with enhanced visibility.
An ERP solution such as NetSuite enables manufacturers to achieve all of this and more through a unified and phased pathway, which ensures the business and staff won’t be overwhelmed – different modules and functions can be added as the journey evolves. Here are suggested steps for manufacturing business to implement a cloud ERP solution:
- Establish which parts of the ERP solution are required, the core elements being financials, CRM & order processing, inventory management and discrete manufacturing
- Once these channels are operating from a unified base, the business can elevate its offering – incorporating additional functions including commerce, warehouse and quality management, supply chain and asset management, work in process, payroll and people management and financial management
- The next step is to expand on what the ERP solution offers – this includes business insight and reporting, project management, planning and budgeting and production management.
- Thereafter, the focus is to accelerate and consider ways the platform enhances the customer and staff experience. It allows the business to optimise sales and orders, automate warehouse and shop floor activity, introduce omnichannel commerce and project and revenue management.
- Businesses that have all of this covered, are then in a position to dominate in their industry. They can make the use of other tools to manage field service and repair, global expansion, business AI and industrial internet of things. The future is endless.
The UK’s manufacturing sector is currently the ninth largest in the word, with an annual output of £183 billion. While this certainly reflects a nation punching above its weight, this position will be under threat if businesses don’t continue to evolve and exploit the opportunities technology offers. With the right technology and tools, manufacturers can enable smoother operations, faster decision making, improve the customer experience and positively impact the bottom line. Most importantly, this doesn’t have to be an overwhelming process that will affect staff motivation or cause any pause in operations – by taking a phased approach to integration, implementing an ERP solution can be smooth, seamless and ultimately rewarding for all.
